Alternative assets valuation function and valuation process - Regulatory aspects

Market turbulence, credit crisis, and pressure from governing bodies for additional regulation in the alternative investment sector are some important elements which we believe will put an increasing emphasis on the requirement to have a strong and reliable fair valuation process for alternative assets. Going forward, general partners can expect investors, auditors and regulators to scrutinise their valuation estimation more closely.

By the end of this training, participants will be able to understand the key roles and responsibilities of the valuation function, as well as the controls and requirements in regards with the regulatory framework.

• Valuation function of an AIFM: operating models, roles and responsabilities
• Overview of the valuation process
• Valuation policy
• Valuation assessments
• Valuation committees and governance
• Hot topics

This training is coordinated by Alexandre Goossens, Partner, and Rafaël Le Saux, Alix Altenor and Samir Moussaoui, Directors at PwC Luxembourg.

Rafaël is a director within PwC Corporate Finance Luxembourg and leads the Valuation & Modelling Advisory services offering locally. Rafaël has 13 years of relevant valuation experience and, prior to joining PwC, was Conducting Officer Valuation for Partners Group’s AIFM, one of the largest in-house AIFMs in Luxembourg as well as standing member of all four asset-class specific global valuation committees overseeing more than USD 100b of AUM.

In his current role, Rafaël and his team support AIFMs with their valuation requirements, in particular with recurring portfolio valuation mandates for complex to value assets, including infrastructure, growth equity and venture capital investments.

Rafaël shows a strong expertise in valuation and modelling across several industries, is a Chartered Financial Analyst, a Chartered Alternative Investment Analyst, a Chartered Financial Modeller and Accredited in Business Valuation by AICPA. Rafaël is also vice-chairman of the Luxembourg Valuation Professionals Association (LVPA) and leads LVPA Technical Working Group.

Alexandre joined PwC Luxembourg in September 2014 and is responsible for the Real Estate & Infrastructure Advisory services within our Alternatives Valuation services practice. Alexandre has been active in the real estate market, and has gained a strong experience through his roles as consultant and valuer. He leads a team dedicated to the annual review of more than 1,500 assets in real estate, debt (backed by real estate collaterals), infrastructure and forestry with an exposure on world markets. Alexandre is responsible for the set-up of risk management tools for funds investing in alternative assets (real estate, infrastructure, real estate debt). He is also an active member of the Royal Institution of Chartered Surveyors (RICS).

Samir joined PwC in 2012 and is a director within our Alternatives Valuation Services (AVS) practice. He has developed expertise of the private equity industry in the context of assurance engagements, with a focus on business valuations and modelling. He developed an extensive knowledge and set of skills on valuation processes, techniques, and market practices along with the relevant auditing skills. Samir helps lead our AVS practice in managing and delivering a diverse range of alternative investments/assets valuation engagements in the context of assurance and non-assurance services to local and international clients and PwC offices. He has exposure to a wide range of valuation methodologies such as discounted cash flow models, trading and transaction multiple valuations, net asset value approach as well as milestone analyses, primarily in the context of financial reporting. Samir is Chartered Financial Analyst (CFA) and Chartered Valuation Surveyor (MRICS).

Alix is an audit director in the Alternatives' Valuation Services department at PwC Luxembourg within the Assurance Alternatives practice. He currently specialises in reviewing valuation models and assumptions used for private company equity and private debt valuations for financial reporting purposes. Alix has performed business valuations for a variety of purposes, including fair value accounting, impairment testing and deferred tax asset recoverability assessments. In his role, Alix has exposure to a range of valuation methodologies such as discounted cash flow models, trading and transaction multiple valuations, milestone analyses, and NAV as a practical expedient. He holds the Chartered Financial Analyst (“CFA”) designation and is a CPA licensed in the state of Massachusetts